SSS members’ contribution in the Philippines raised to 14%– until it reaches 15% by 2025– is currently regulated this January 2023 under Republic Act No. 11199 known as the Social Security Act of 2018, as per President and Chief Executive Officer Michael G. Regino.
The SSS increase was announced in December 2022, at the height of inflation and a spike in the price of goods and services. Thus, several Filipino citizens who were opposed to the hike have embarked on a difficult but necessary journey.
Employers will bear the 1% additional contribution increase mentioned above. Individual paying members, including self-employed, OFW members, and freelancers, must pay the full contribution rate.
There will also be changes to the minimum and maximum monthly salary credits (MSC). Regino explained that the MSCs serve as the foundation for calculating the SSS members’ monthly contributions.
Moreover, PhilHealth’s contribution was announced to increase from 4% to 4.5% but was suspended by President Bong-Bong Marcos on January 03, 2023.
Filipino Citizens expressed contrasting opinions regarding the contribution hike. Business owners may find it burdensome- the fact that SMEs are just starting to recover from the pandemic. However, employees may view it as an increased expense, but it entitles them to substantial benefits.